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China, the world’s second-largest economy, created a list with 128 U.S. products, worth $3 billion in import value in 2017, in response of Donald Trump’s new tariffs.
The new tariffs, released in a statement on China’s commerce ministry’s website, include wine, fruit, steels pipes, and a few other products.
According to CNBC:
Those products could see a 15 percent duty, while a 25 percent tariff could be imposed on U.S. pork and recycled aluminium goods, according to the statement.
The statement did not go into greater detail. U.S. agricultural products, particularly soybeans, have been flagged as the biggest area of potential retaliation by Chinese President Xi Jinping’s administration.
President Donald Trump and China’s President Xi Jinping leave after an opera performance at the Forbidden City in Beijing, China, November 8, 2017.
Beijing will take measures against the 128 U.S. goods in two stages if it cannot reach an agreement with Washington, the ministry said, adding that it could take legal action under World Trade Organization rules.
Asian stock markets took a dive on the news, with Japan’s Nikkei index sliding as much as 3 percent in early Friday trade.
The Friday response from Beijing is relatively measured, experts told CNBC.
According to economist Tony Nash, the CEO of of data analytics firm Complete Intelligence, the $3 billion worth of goods being targeted is “not a lot in terms of the total U.S.-China relationship.”
In 2018, Chinese imports from the U.S. are projected to reach $172 billion, making the $3 billion look like a small fraction of goods.
Conversely, China sent a massive $505.6 billion worth of goods to the USA in 2017.
Elon Musk, the founder and CEO of Tesla, pointed out how difficult it currently is to send cars to China, stating, “I am against import duties in general, but the current rules make things very difficult. It’s like competing in an Olympic race wearing lead shoes.”
For example, an American car going to China pays 25% import duty, but a Chinese car coming to the US only pays 2.5%, a tenfold difference— Elon Musk (@elonmusk) March 8, 2018
Will a trade war take place? We’ll see. As usual, it appears the mainstream media is back sensationalizing these new tariff.
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Source: IloveMyFreedom
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